Deripaska admits criminal behaviour of the 90s

London. Ahead of another spectacular court case in London, the aluminium czar Deripaska talks out of school: Yes, he had paid protection money to criminals. He had hated it but there was no other way.

Deripaska has to appear in front of a London court accused of embezzling 20 percent of RUSAL shares, worth around £1.6 billion, from his former business partner Michail Chorny (different spelling Cherny/Chernoy).

The thing with the “roof”...

In view of the court case, Oleg Deripaaska talks now in an interview with the British newspaper “The Sunday Telegraph” about the wild 90s with its thieving capitalisms. The payments were called “roof”, Deripaska explained. “The money is for the safety of the clients...I hated it, but I had no choice, I had to protect myself and my staff.”

At the beginning of the 90s with the start of privatization in Russia there was immediately pressure from criminal organisations, Deripaska said in his interview. For the first time I was really frightened when they shot my manager two bullets in the head (...). That’s when I decided to accept their conditions for a period of time.

Madness through sudden wealth

The currently short of cash oligarch dates the beginning of the distribution of the aluminium market to 1993. During that time many had started to “become insane by the sudden mass of wealth that came pelting down on them”.

You borrowed $500,000 and half a year later you only had to pay back $100,000. (...) You could buy a ton of aluminium for $400 and sell it again for $1200”, recalls Deripaska, this was the golden age of the galloping inflation that brought social decline to so many Russians at the time.

Great times for criminals

“You have to understand the situation”, said Deripaska. “It was not easy money. All state institutions had ceased to function. The term “State” in itself was in danger of disappearing. “Instead there was now organised crime”.

In order to solve this problem Deripaska eventually formed his own security service for which he employed his former army comrades. His goal was “to clean the industry of criminals”.

He has no remorse: “I am proud of it as I protected my staff and created a business with potential”. He had paid protection money to the blackmailers and never let them get involved in the management of the business. Since 2002 he had “broken off” all relations with the criminals.